Wacker Chemie, the German chemical company, released its second-quarter financial results, citing a decrease in net income and revenue. The company attributed the decline to weak demand in the chemicals business and lower volumes and prices. Despite the challenging market conditions, Wacker Chemie confirmed its full-year guidance as previously stated.
Net Income and Revenue Figures
In the second quarter of 2022, Wacker Chemie’s net income dropped significantly from EUR390.9 million to EUR118.9 million ($131.8 million). The decrease was primarily driven by weak demand in the chemical business, which negatively impacted sales and earnings.
Similarly, the company’s revenue fell from EUR2.17 billion to EUR1.75 billion compared to the same period last year. The decline can be attributed to lower selling prices and volumes.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Wacker Chemie experienced a 60% decline in EBITDA, reaching EUR255.5 million. The decrease was primarily due to lower volumes and prices, as well as reduced utilization rates on certain plants.
Full-Year Guidance
Despite the challenging market conditions, Wacker Chemie reaffirmed its full-year guidance for the fiscal year. The company expects sales to range between EUR6.5 billion and EUR6.8 billion. Additionally, they anticipate EBITDA to be between EUR800 million and EUR1.0 billion, with a substantial margin decline. It is worth noting that group net income is expected to be significantly lower than in 2022.